Determining Credit Scores for Consumer Goods Companies

Business Case

Companies in the wholesale produce, lumber, and forest products industries need to be able to assess the creditworthiness and reliability of fellow companies with which they do business. Whether they are suppliers, buyers, brokers, or transporters, accurate risk measures are a critical piece of information.

Customer surveys provide useful and broad-ranging views of interactions between participants in the market, particularly in terms of payment timing and customer satisfaction. Accounts receivable reports provide another view into payment behavior. This information could be turned into a differentiated credit rating tool.

Our continuing relationship with ModelOp and their analytic modeling capabilities has delivered an invaluable impact on our business and our customers, and we look forward to using their next generation software to provide even greater results in the future.

Mark Erickson

SVP

Model Deployed in Business

ModelOp operationalized the life cycle of a model for Produce and Lumber industries which predict likely future delinquent payment behavior. ModelOp provides this as a hosted service for the customer where monthly scores are generated via an R script and provided to their credit team.

Project Specifications:

Model Technique(s)

Logistic Regression

Model Language

R

Model Visualizer

Excel

Key Data Sources

Customer Surveys, A/R Reports

For Businesses, Not Scientists

A critical component of our customer’s rating service offerings are predictive risk scores developed and hosted by ModelOp. These scores are industry standards that allow companies in the Produce and Lumber industries to compare and evaluate payment behavior of their counterparts.

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